The president of Mossy Enterprises asks if you could indicate the impact certain transactions have on the following ratios.

Instructions
Complete the table, indicating whether each transaction will increase (I), decrease (D), or have no effect (NE) on the specific ratios provided for Mossy Enterprises.

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Accounts Average Current Receivable Collection Ratio Turnove (10x) Period (36.5 days) Transaction 1. 2. 3. 4. Received $5,000 on cash sale. The cost of the goods sold was $2,600. Recorded bad debt expense of $500 using allowance method. Wrote off a $100 account receivable as uncollectible (Uses allowance method.) Recorded $2,500 sales on account. The cost of the goods sold was $1,500.